Online car seller and trading platform Auto Trader has revealed plans for an investor cash call to bolster its balance sheet as it furloughs staff and slashes executive pay in the face of the coronavirus pandemic.

The company said it would launch a placing of up to 46.5 million new shares representing around 5% of its issued shares capital to strengthen its finances.

Auto Trader is also furloughing staff under the government scheme, which will pay them 80% of salary, but the firm said it plans to “fully top up salaries for the large majority of those who are impacted”.

Its board directors have also agreed to forgo at least half of their salaries or board fees for the “foreseeable future”, while executive bonuses will be waived this year.

But while the car industry has ground to a halt amid the outbreak, Auto Trader said it saw a record number of vehicles advertised on its site after announcing just before the UK lockdown that customers could list cars free of charge throughout April.

We believe our actions to support our employees and customers, to reduce our costs and to strengthen our balance sheet will provide greater flexibility to act in the long-term interests of shareholders, employees, customers and other stakeholders

It said around 540,000 vehicles were displayed on its site at the end of March, up from 480,000 a year earlier.

The group expects results for the year to the end of March to be “broadly” in line with forecasts, but stressed that it cannot accurately provide guidance for 2020-21 due to the Covid-19 disruption.

The firm has already axed most of its non-essential spending in areas such as marketing.

“We do not believe that pausing marketing spend at this time will make a material difference to our levels of consumer audience nor our long-term brand recognition,” it said.

Its half-year results in November showed a 12% rise in pre-tax profits to £127.7 million on revenues 6% higher at £186.7 million.

Useful information

The HSE have developed an information pack on how to protect yourself and others from coronavirus. Read it here

Anyone with symptoms of coronavirus who has been in close contact with a confirmed case in the last 14 days should isolate themselves from other people - this means going into a different, well-ventilated room alone, with a phone; phone their GP, or emergency department;

GPs Out of Hours services are not in a position to order testing for patients with normal cold and flu-like symptoms. HSELive is an information line and similarly not in a position to order testing for members of the public. The public is asked to reserve 112/999 for medical emergencies at all times.

ALONE has launched a national support line and additional supports for older people who have concerns or are facing difficulties relating to the outbreak of COVID-19 (Coronavirus) in Ireland. The support line will be open seven days a week, 8am-8pm, by calling 0818 222 024